Today, mixed-use developments present an attractive investment opportunity. The state of Texas benefits from steady population and economic growth, further making mixed-use building development a great investment opportunity as demand for these types of properties is expected to rise over the next decade. If you’re interested in buying, developing, or investing in a mixed-use property in Texas. consider the benefits we’ve outlined below.
Benefits of a Mixed-Use Developments for Investors
Greater Exposure to Customers
One of the biggest benefits to mixed-use developments is that they have the benefit of built-in clientele for commercial spaces, which can provide multiple streams of income to investors. Along with cultivating both a residential and commercial audience, mixed use development projects have the power to attract an immense amount of interest and foot traffic compared to stand-alone stores. Furthermore because of this ease of access to retailers, consumers typically return for repeat business.
Better Property Management
Another reason for the growth in mixed use developments is the benefit of better property management. Mixed use developments encompass a blend of residential, commercial, and industrial real estate. A proficient management service company is generally necessary to address the entire community’s diverse needs, one that is well equipped to handle the challenges of multiple property types at once. The benefit of this typically includes higher quality tenants, shorter vacancy cycles, and smooth business operations.
Existing Nearby Amenities
Mixed use properties are often in close proximity to other community amenities, making them highly desirable residential spaces. Generally speaking, these properties are situated in densely-packed areas near existing amenities such as schools, libraries, and parks. Homebuyers and renters alike have a strong preference for a centralized location with easy access to city amenities. Mixed-use developments bring these “wants” to the forefront, and ultimately help foster connected, inclusive, and sustainable communities.
Less Investment Risk
Mixed-use developments are home to a wide variety of tenants (commercial, residential, recreational, etc.). Because of this, the overall risk is lessened for investors. Diversifying can help investors minimize the total impact of bad assets on their investment portfolio, including the ability to counterbalance the loss. Whether commercial downturns or residential, mixed use developments are considered to be a relatively safe bet. Along with providing less risk, mixed use developments offer higher income, cash flow, longer leases, and less competition, which are ideal when seeking to diversify your portfolio.
Walkability & Transportation
Potential homebuyers and other tenants are becoming increasingly drawn to walkable communities, which could lead to high rental demand. Recent surveys have revealed that Americans prefer walkable communities more now than ever before. 48 percent of respondents said they would prefer to live in communities containing houses with small yards but within easy walking distance of community amenities. For the majority of today’s homebuyers, walkability is at the top of their list, which is why more and more builders are constructing mixed use developments to accommodate demand.
Casey Development, Ltd: Mixed-Use Property Developers in Austin, San Antonio, San Marcos, and More
Casey Development, Ltd. has several decades of combined experience partnering with investors to find, develop, lease, and/or sell mixed-use properties throughout Central Texas. If you’re looking to diversify your real estate portfolio by adding a mixed-use development to it, contact the team at Casey Development, Ltd. today.